Cell Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes Cell to issue 40,000 shares of 10%, $50 par preferred stock and 100,000 shares of no-par common stock. Cell completed the following transactions:
Jan 2 Issued 21,000 shares of common stock for equipment with a market value of $140,000.
6 Issued 600 shares of preferred stock to acquire a patent with a market value of $30,000.
9 Issued 11,000 shares of common stock for cash of $66,000.
Requirements
1. Record the transactions in the general journal.
2. Prepare the stockholders’ equity section of the Cell balance sheet at January 31. The ending balance of Retained earnings is $93,000.